What happened: Utah Attorney General Derek Brown sued Kalshi and two Susquehanna trading firms on October 20 in Third District Court in Salt Lake County, alleging they offered illegal gambling to Utah residents. The state estimates Kalshi collected between $30,591,600 and $61,183,200 in fees on what the complaint calls illegal wagers placed by Utah accounts as of October 19. The defendants are Kalshi Inc., KalshiEX LLC, Kalshi Klear Inc., Kalshi Klear LLC, Kalshi Trading LLC, Susquehanna International Group, LLP and Susquehanna Government Products, LLLP, plus 100 unnamed defendants. The complaint alleges the Susquehanna firms act as market makers on Kalshi, taking the other side of retail bettors’ wagers.
The fee math: The complaint counts each $1 event contract as one wager and says Kalshi’s fees range from 1 cent to 2 cents per wager. It says Utah accounts held more than $5 million of Kalshi’s roughly $451.29 million in open positions on February 25, 2026, which it puts at about 1.11%. It applies that share to about 275.6 billion sports, politics, elections, culture and mentions wagers placed on Kalshi since July 2021, for an estimated 3,059,160,000 Utah wagers. At 1 cent per wager, 3,059,160,000 times 1 cent equals $30,591,600. At 2 cents per wager, it equals $61,183,200. The state separately estimates Kalshi received at least $5.5 million in gambling profits from Utah residents as of May 2026. The complaint says the actual figures are in Kalshi’s possession and could be higher or lower.
The basketball markets: Among its examples of sports wagers, the complaint lists whether Precious Achiuwa would score 10 or more points for the Utah Jazz against the Sacramento Kings on March 15, 2026, and whether Utah Valley would beat Utah Tech in men’s basketball on March 7, 2026. It also lists a spread and a total on that Utah Valley-Utah Tech game, AJ Dybantsa winning NBA Rookie of the Year and a multi-leg market on an April 18, 2026, Nuggets-Timberwolves game. Citing a Kalshi executive’s February 25, 2026, federal court declaration, the complaint says 32,940 accounts with Utah addresses had completed sign-up, out of 55,819 registered.
The claims: The complaint brings counts for public nuisance, unjust enrichment, civil conspiracy, declaratory judgment and injunctive relief. The state asks the court to declare the wagers illegal in Utah, bar the defendants from offering them in the state, and require a court-approved third-party geolocation provider to enforce that. It also seeks restitution and damages, an accounting and disgorgement, abatement costs, punitive damages, attorney fees and interest, and it demands a jury trial.
Kalshi’s response: “Kalshi is a federally regulated financial exchange, like the stock market. Our customers trade with each other and set the prices,” spokesperson Jacki McGavick said, per Utah News Dispatch. “As a national derivatives market overseen by the CFTC, Kalshi answers to federal law, and no single state should have a veto over it. This latest state court action does not affect our ongoing federal litigation.” Susquehanna International Group did not respond to SBC Americas’ request for comment before publication.
The background: Kalshi sued Utah in federal court in February. On August 4, U.S. District Judge Robert J. Shelby granted Utah summary judgment, ruling that the state’s anti-gambling laws apply to Kalshi’s sports contracts, per the attorney general’s office. Kalshi has appealed to the Tenth Circuit, per KSL.
Primary sources: Utah’s complaint (via Utah News Dispatch); Utah Attorney General on X; Utah Attorney General on the federal ruling; Utah News Dispatch; KSL; SBC Americas
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